Consider the following information for Watson Power Company:

Debt:

$4,5007\mathrm{.}5$ percent coupon bonds outstanding, $$1,000$ par value,

$22$ years to maturity, selling for $104$ percent of par; the bonds

make semiannual payments.

Common stock: $,112,500$ shares outstanding, selling for $$62$ per share; the beta is

$1\mathrm{.}2.$

Preferred stock: $16,000$ shares of $6\mathrm{.}5$ percent preferred stock outstanding,

currently selling for $$106$ per share.

Market: $,9$ percent market risk premium and $6\mathrm{.}5$ percent risk$-$free rate.

Assume the company's tax rate is $34$ percent.

Find the WACC.

Multiple Choice

$11\mathrm{.}47\%$

$11\mathrm{.}87\%$

$11\mathrm{.}37\%$

$12\mathrm{.}32\%$

$11\mathrm{.}62\%$